The Money Man Behind Rick Santorum: Who Is Foster S. Friess?
Savings Experiment: Snow RemovalCNBC's David Faber reported yesterday about the potential break-up of Time Warner Inc. (NYSE: TWX) and had some interesting detail about just how it might play out.
Honestly break up is really the most sensible path for Time Warner since Wall Street is clearly not embracing the media conglomerate model right now. TWX could make a case that its diversification provides safety if the economy softens further, but investors aren't buying it. So far today, the stock is at $17.80, losing another 1%.
Here are a few points from Faber's report:
Time Warner Cable Inc. (NYSE: TWC): Now a portion of Time Warner's stake trades separately. But the mother ship could spin off 85% of the unit and offer TWX shareholders an opportunity to exchange some of their shares for Time Warner Cable shares.
Printing and publishing: Faber's report also noted that the company could sell off its printing and publishing units.
AOL: It could even spin off some of AOL as its own unit.
Faber did warn that nothing would be imminent and this would not occur overnight, but the hints or unveiling may come with what Faber called Time Warner's likely "lackluster" earnings report next week. He noted Jeff Bewkes would likely be running the show there early next year and perhaps a break-up could occur late in 2008.
I have speculated about several different paths that the company could take to pursue this strategy. This even started showing up in stock options trading in prior months.
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
